Wasatch Wilderness and Watershed Protection Act - Designates specified federal lands in the vicinity of the Lone Peak Wilderness and the Mount Olympus Wilderness, and specified federal lands comprising the Wayne Owens Grandeur Peaks/Mount Aire Wilderness within the Uinta-Wasatch-Cache National Forests in Salt Lake County, Utah, as wilderness and as either a new component or as an addition to an existing component of the National Wilderness Preservation System.

Establishes specified federal lands within the Uinta-Wasatch-Cache National Forests as the Mt. Aire, Mt. Olympus, Twin Peaks, and Lone Peak Special Management Areas.

Requires the Special Management Areas to be managed to maintain their presently existing wilderness character and potential for inclusion in the System.

Allows the commercial helicopter-assisted skiing and snowboarding activities (known as heliskiing) that have been authorized on the federal lands included within the Special Management Areas to continue. Permits the Secretary of Agriculture (USDA), except as provided below, upon the expiration of such an authorization that was in effect for heliskiing, to reissue such authorizations in accordance with Forest Service procedures.

Requires the Secretary of Agriculture, within one year from the time in which all heliskiing activities within any special management area are no longer authorized or have otherwise been terminated, to publish a notice in the Federal Register to that effect. Designates the federal lands included within such an Area for which such a notice has been published as wilderness and adds them to the System as described in this Act.

Requires a land exchange involving certain federal and non-federal lands concerning the Uinta-Wasatch-Cache National Forests.